CHARLESTON, W.Va. -- A state agency's decision to allow Highland Hospital to build a $15 million four-story replacement facility in Kanawha City will help alleviate persistent overcrowding at West Virginia's two state-run psychiatric hospitals, Highland executives said Monday.

The West Virginia Health Care Authority unanimously approved Highland's expansion plans. The replacement hospital will house 80 patients - up from the 58 beds now available.

Highland plans to start construction on the 72,500-square-foot building in September.

Additional beds are needed for the increasing number of adults and children statewide with mental illness, said Highland Chief Executive Officer David M. McWatters. The new facility would have rooms reserved for patients diverted from state hospitals.

"This has been long overdue for the state of West Virginia, and we could not be happier about this decision," McWatters said Tuesday.

The hospital was notified about the Health Care Authority's decision Monday afternoon.

The replacement hospital's first floor will house an outpatient service center for children and families. Twenty children and 20 adolescents will take up beds on the third floor, and 40 adult patients will stay on the third floor. The building's top floor will include administrative offices.

Highland officials said the existing Kanawha City facility - originally a private hospital built in the 1930s - is too small and outdated.

The new building, like the existing hospital, would not accept so-called "forensic" patients, people convicted of crimes who receive mental health care instead of jail time.

An existing one-story professional building is being demolished to make way for the replacement hospital. Construction is expected to take about a year.

CHARLESTON, W.Va. -- A state agency's decision to allow Highland Hospital to build a $15 million four-story replacement facility in Kanawha City will help alleviate persistent overcrowding at West Virginia's two state-run psychiatric hospitals, Highland executives said Monday.

The West Virginia Health Care Authority unanimously approved Highland's expansion plans. The replacement hospital will house 80 patients - up from the 58 beds now available.

Highland plans to start construction on the 72,500-square-foot building in September.

Additional beds are needed for the increasing number of adults and children statewide with mental illness, said Highland Chief Executive Officer David M. McWatters. The new facility would have rooms reserved for patients diverted from state hospitals.

"This has been long overdue for the state of West Virginia, and we could not be happier about this decision," McWatters said Tuesday.

The hospital was notified about the Health Care Authority's decision Monday afternoon.

The replacement hospital's first floor will house an outpatient service center for children and families. Twenty children and 20 adolescents will take up beds on the third floor, and 40 adult patients will stay on the third floor. The building's top floor will include administrative offices.

Highland officials said the existing Kanawha City facility - originally a private hospital built in the 1930s - is too small and outdated.

The new building, like the existing hospital, would not accept so-called "forensic" patients, people convicted of crimes who receive mental health care instead of jail time.

An existing one-story professional building is being demolished to make way for the replacement hospital. Construction is expected to take about a year.

The state has licensed Highland for 80 beds, but the Kanawha City psychiatric facility now has 58 beds because of space limitations.

"The replacement hospital allows us to operate at full capacity," said Jim Strawn, Highland's spokesman. "This is a great thing for the whole region and state. It paves the way to help us alleviate some of the overcrowding at the state-operated psych hospitals."

Recent state reports show that mentally ill patients are routinely diverted from the state-run hospitals in Huntington and Weston and sent to private facilities across the state.

Highland treats adults, children and teenagers with mental illness - mainly depression, schizophrenia and bipolar disorder. The hospital also has a handful of beds for people with substance abuse problems.

The replacement building, which would front MacCorkle Avenue at 56th Street in Kanawha City, is one of three projects Highland is proposing.

The hospital also plans to build an $8 million central services building that would include a gym, laundry facility, food service area and welcome center.

In 2013, the hospital hopes to start construction on its final project, a $15 million three-story facility with at least 80 additional beds.

Highland expects to add 200 full-time jobs by the time all the new facilities open. The nonprofit now employs about 300 workers.

"Highland has a long and rich tradition," said James Dissen, chairman of Highland's board of directors. "We are excited about the dawning of a new era in mental health services for our region."

Reach Eric Eyre at erice...@wvgazette.com or 348-4869.